TMI Blog1968 (7) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, the question referred is : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the income from the Trichur Vegetable Stores ? " The facts are as follows : Two persons, P. P. Johny and P. P. Devassikutty, constituted an association of persons ". This association conducted two businesses known as " Trichur Vegetable Stores " and " Trichur Grocery ". P. P. Johny filed a return on December 6, 1960, of his personal income for the assessment year 1960-61. He included in it his half share of the income from the " Trichur Vegetable Stores " as Rs. 257.09. The Income-tax Officer, after calling for and examining the separate books of account of the " Trichur Vegetable Stores ", fixed its inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng separately the income of the same business for the purpose of assessing separately the income of the " association of persons and whether the deleting of that income by the Tribunal from the income of the " association of persons " for the purpose of assessment was not right. The Act applicable in the instant case is the Indian Income-tax Act, 1922. The main charging section in that Act is section 3. It is in the following terms : "Where any Central Act enacts that income-tax shall be charged for any year at any rate or rates tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions of this Act in respect of the total income of the previous year of every individual, Hindu undivided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is not open to the department to assess the same income in a different manner. In Joti Prasad Agarwal v. Income-tax Officer, B-Ward, Mathura, out of 30 members of an association 23 were assessed to income-tax and in their individual assessments their respective shares of the proceeds earned by the association during that period were included and the tax levied thereon was paid by them. When later on the department initiated assessment proceedings and assessed the income of the association in its hands some members of the association moved the Allahabad High Court for relief against the order of assessment. That court disposed of that matter in favour of the assessee. It is stated as follows in that decision: " In the present case, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e person. In fact, when examining this argument advanced by learned counsel for the opposite party, we put a question whether he could point out any specific provision in the Income-tax Act under which there was a bar to the income of one individual for one previous year being repeatedly assessed and charged to tax. He was unable to point out any and we had to fall back on section 3 of the Act reading in it a provision which enables the income-tax department to charge tax only once on the income and not more than once. In the present case, this income of the association has already been charged in the hands of the members of the association individually and the assessment and the charge of tax under that assessment have not yet been set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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